Tata Tele Maharashtra to raise Rs 200 billion through debt instruments

.story-content span,.story-content p,.story-content div{color:#000!necessary;font-family:‘open sans‘,Arial!necessary;font-size:15px!necessary} span.p-content div[id^=”div-gpt”]{line-height:0;font-size:0}

Debt-ridden telecom enterprise Maharashtra on Friday received its board’s approval to raise added fund of Rs 200 billion through debt instruments.

“…the board of directors of the firm at its meeting held on August 10, 2018 has approved raising of added funds up to an aggregate amount of Rs 200 billion," (Maharashtra) said in a regulatory note.

The fund raising will be done either by issue of securities, instruments etc including redeemable preference shares to promoters on preferential basis, non-convertible debentures or inter corporate deposit or loans from the promoters or different entities. The parent enterprise of the firm (TTSL) has dues of around Rs 100 billion pending to be paid to the telecom department. is in process of merging its mobile service business with Bharti Airtel and will have to clear dues before the DoT takes merger on record.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

TTML posted narrowing of total out-and-out loss to Rs 4.54 billion for the three months ended June 30, 2018, from Rs 6.81 billion in the March quarter and Rs 5.06 billion during the April-June previous fiscal year.

The firm, whose accumulated losses have exceeded its paid up capital and reserves, had said in a regulatory filing that it has secured a support letter from the promoters, indicating their willingness to organise for any liquidity shortfall in meeting financial obligations and repayment of debt.

TTML has obtained a support letter dated May 28, 2018 from its promoter indicating that the promoter will take required actions to organise for any shortfall in liquidity of the firm that may arise to meet its financial obligations and timely repayment of debt.

Tata Teleservices is in discussions to monetise "certain assets", proceeds of which will be used to meet its financial obligations when they fall due.

Leave a Comment